The two firms have received nod from the Competition Commission
for sale of seven brands to Emcure Pharma to comply with the fair
trade watchdog's conditional nod for their merger. In an order
issued yesterday, CCI approved the deal with Emcure, which would
purchase the 'divestment products' that were ordered to be
sold in an earlier direction issued in December last by the
Competition Commission of India (CCI). These seven brands were at
the core of the CCI's contention that the merger between Sun
Pharmaceutical Industries and Ranbaxy Laboratories was
'prima-facie' in violation of competition laws and
therefore the regulator had ordered divestment of those products
under its 'conditional' approval to the deal. In December,
CCI had directed Sun Pharma to divest all products containing
'Tamsulosin + Tolterodine' which are marketed and supplied
under the Tamlet brand name. Similarly, Ranbaxy was directed to
divest all products containing Leuprorelin which are marketed and
supplied under the Eligard brand name. It also had to divest
products such as Terlibax, Rosuvas EZ, Olanex F, Raciper L and
Commission often provides remedies to the problems of merger so
that the deal can get green signal.
In Phase I mergers cleared by European Commission –
Pfizer/Wyeth between two originators ultimately raised no
issues in the area of human pharmaceuticals but was cleared subject
to a number of divestments relating to animal-health vaccines,
animal-health pharmaceuticals and medicinal-feed additives.
Abbott/Solvay Pharmaceuticals raised competition concerns in
relation to certain IVD genetic testing products. Abbott submitted
divestment commitments in relation to CF testing.
It was on 6th April, 2014 that Sun
Pharma agreed to buy Ranbaxy at $3.2 billion in stock from its
parent Daiichi Sankyo Ltd, creating the largest pharmaceutical
company with an 8.5% share of India's pharmaceutical market,
worth an annual Rs.76,000 crore by sales.
As per the Merger and Acquisition
("M&A") Rules, companies need to
take CCI's approval for mergers if the combined assets of the
two entities are worth more than Rs.1,500 crore or sales amount to
more than Rs.4,500 crore in India.
The investigations conducted by CCI
found that the proposed merger would lead to high concentration in
forty six drug categories and hence instead of showing a green
signal in the first phase, CCI sent a show cause notice to the
companies taking the merger investigations to phase II for the
The Hon'ble High Court of Bombay has held that where a Scheme of Amalgamation is executed between two companies registered in two different states [...], then the said two orders are two independent instruments.
The Ministry of Corporate Affairs notified on June 5, 2015 that certain provisions of the Companies Act, 2013 shall not apply to private limited companies or shall apply with such exceptions or modifications as directed in the notification.
Whilst trade and barter have existed since early times, the modern practice of forming business relationships through the means of contract has come into existence only since the industrial revolution in the West.
The Supreme Court in Central Bureau of Investigation, Bank Securities and Fraud Cell and Others v. Ramesh Gelli and Others has held officers of private banks to be public servants under Prevention of Corruption Act, 1988.
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